00:00Professor Hosein explains that the country's external reserves have plunged to nearly minus $1 billion, leaving the economy in a bad position.
00:10He tells us this shows the stock of reserves at central bank less external debt and is not related to the Heritage and Stabilization Fund.
00:19He further notes that as at July 2025, net official reserves stood at $4.816 billion, which represents 6.9 months' import cover.
00:32Professor Hosein says with far less foreign exchange available, banks had to lower available monthly limits on credit cards, highlighting the severe strain on the nation's financial capacity.
00:45We are in a very bad position as concerns the amount of money we have that we can lend to the public in one form or the other.
00:55Now, this is a rough number, but it's a good guide as to the net reserves position.
01:02And in that context, when you see the commercial banks slash the cap on credit cards down to $2,500 per month,
01:12you understand why, because there simply isn't as much foreign exchange as before.
01:17Professor Hosein warns that the economic pressure is already hitting businesses hard.
01:23With some small enterprises forced to close, he predicts that things may get worse.
01:28I don't think we have reached the bottom of the barrel as yet. I think it will continue to get worse.
01:34In fact, if you slash credit cards in that way, all the small businesses or a portion of the small businesses that rely on import for distribution
01:44and their credit cards to buy goods to sell, would know they are facing what I would call a de facto devaluation.
01:51Professor Hosein is urging the sector to focus on producing more goods for export,
01:57emphasizing that boosting trade is essential to ease the nation's financial pressures.
02:02What we need to do now is to support this de facto devaluation with strategies that will help strengthen import substitution.
02:13So to get some of the entrepreneurs to, rather than import, because it's more expensive and they can't get forex,
02:21to now produce some of those same goods and services within Trantobago, that's import substitution,
02:26or to get some of these same people to produce goods and services that we can export.
02:37And that's where the low-hanging foods comes in.
02:41The Economist also highlights that, according to data, the country's external debt has reached its highest level since 1956.
02:50Nicole M. Romani, TV6 News.
02:56The Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the Economist, the
Be the first to comment